XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.19.2

Investments | 6 Months Ended
--- | ---
Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments The amortized cost and fair value of securities available for sale are as follows:
|  | June 30, 2019
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available for sale: |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 233,210 |  |  | $ | 1,196 |  |  | $ | (1,445 | ) |  | $ | 232,961 |
Utah Housing Corporation bonds |  | 21,136 |  |  | 181 |  |  | (70 | ) |  | 21,247 |
U.S. government-sponsored enterprises |  | 77,173 |  |  | 160 |  |  | — |  |  | 77,333 |
Total |  | $ | 331,519 |  |  | $ | 1,537 |  |  | $ | (1,515 | ) |  | $ | 331,541 |
|  | December 31, 2018
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available for sale: |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 159,937 |  |  | $ | 155 |  |  | $ | (5,517 | ) |  | $ | 154,575 |
Utah Housing Corporation bonds |  | 22,388 |  |  | 23 |  |  | (741 | ) |  | 21,670 |
Total |  | $ | 182,325 |  |  | $ | 178 |  |  | $ | (6,258 | ) |  | $ | 176,245 |
The following table summarizes the amount of gross unrealized losses for our available for sale securities and the estimated fair value for securities having gross unrealized loss positions, categorized by length of time the securities have been in an unrealized loss position:
|  | Less than 12 months |  | 12 months or more |  | Total
|  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value
As of June 30, 2019: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | (6 | ) |  | $ | 10,815 |  |  | $ | (1,439 | ) |  | $ | 101,969 |  |  | $ | (1,445 | ) |  | $ | 112,784 |
Utah Housing Corporation bonds |  | — |  |  | — |  |  | (70 | ) |  | 11,955 |  |  | (70 | ) |  | 11,955 |
U.S. government-sponsored enterprises |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | (6 | ) |  | $ | 10,815 |  |  | $ | (1,509 | ) |  | $ | 113,924 |  |  | $ | (1,515 | ) |  | $ | 124,739 |
As of December 31, 2018: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | (228 | ) |  | $ | 16,948 |  |  | $ | (5,289 | ) |  | $ | 125,537 |  |  | $ | (5,517 | ) |  | $ | 142,485 |
Utah Housing Corporation bonds |  | — |  |  | — |  |  | (741 | ) |  | 16,647 |  |  | (741 | ) |  | 16,647 |
Total |  | $ | (228 | ) |  | $ | 16,948 |  |  | $ | (6,030 | ) |  | $ | 142,184 |  |  | $ | (6,258 | ) |  | $ | 159,132 |
Our investment portfolio is comprised primarily of mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, with amortized costs of $62 million, $110 million, and $60 million, respectively, at June 30, 2019. We own these securities to meet our requirements under the Community Reinvestment Act. As of June 30, 2019, 47 of the 101 separate mortgage-backed securities in our investment portfolio had unrealized losses, and 19 of the 47 securities in a net loss position were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remaining securities in a net loss position carry a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. We have the ability and the intent to hold each of these securities for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. As of December 31, 2018, 74 of the 86 separate mortgage-backed securities in our investment portfolio had unrealized losses, and 34 of the 74 securities in a net loss position were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remainder carried a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. We also invest in Utah Housing Corporation bonds for the purpose of complying with the Community Reinvestment Act. These bonds are rated Aa3 by Moody’s Investors Service. As of June 30, 2019, one of the three separate bonds was in a net loss position. We have the intent and ability to hold each of these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. In the second quarter of 2018, we elected to sell nine securities totaling $41 million to better align the portfolio with the Community Reinvestment Act requirements, and we recognized a $2 million loss upon the sale of those securities. Beginning in the second quarter of 2019, we began investing in U.S. government-sponsored enterprise securities issued by the Federal Home Loan Bank (“FHLB”) and Freddie Mac. These bonds are rated AA+ by Moody’s Investors Services and are currently in an unrealized gain position. As of June 30, 2019, the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments.
Year of Maturity |  | Amortized Cost |  | Estimated Fair Value
2020 |  | $ | 39,484 |  |  | $ | 39,545 |
2021 |  | 37,689 |  |  | 37,787 |
2038 |  | 262 |  |  | 282 |
2039 |  | 2,907 |  |  | 3,065 |
2042 |  | 8,021 |  |  | 7,800 |
2043 |  | 13,727 |  |  | 13,776 |
2044 |  | 20,078 |  |  | 20,090 |
2045 |  | 22,915 |  |  | 22,728 |
2046 |  | 35,609 |  |  | 35,195 |
2047 |  | 53,183 |  |  | 52,759 |
2048 |  | 15,159 |  |  | 15,511 |
2049 |  | 82,485 |  |  | 83,003 |
Total |  | $ | 331,519 |  |  | $ | 331,541 |
The mortgage-backed securities have been pledged to the Federal Reserve Bank (the “FRB”) as collateral against any advances and accrued interest under the Primary Credit lending program sponsored by the FRB. We had $233 million and $147 million par value of mortgage-backed securities pledged to this borrowing facility at June 30, 2019 and December 31, 2018, respectively, as discussed further in Note 6, “Borrowings.”

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration